The resistance of 12065 holds strong as the index reacted from the same but the extent of the decline was a bit surprising. Despite the sharp price cut the index lacks fresh short positions & hence the panic looks temporary in nature. The immediate support for the day stands at 11580 while on a closing basis 11630 remains significant from the short term trend perspective. With most of the momentum indicators cooling off its ideal to wait for more clarification on price as the sector rotation remains interesting. No major signs of divergence in strength been displayed on any of its trend strength indicators, hence a breach above 12065 could push the index towards 12146 in no time which would be a key level for assessment of its ongoing strength. ADX strength indicator on its daily scale too has been on track while the index constituents are placed well for another round of rotation in leadership as Banks take charge from Pharma, IT now set into a cool off mode. With no signs of reversal yet or lack of strength within the ongoing momentum, short term traders should retain their momentum longs until 11630 holds intact while any corrective within the range of 12050-11700 could be a temporary pullback for a final push above 12065. As the sector rotation & market breath has been healthy , one could maintain a combination of long short positions for the rest of the series.
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